This was a quick study. I used the shape tool to make the sun, then added eyes and mouth with the pencil tool. I put in a blue background block, and then using the ellipse tool, I made a cloud with several circles. To create a single shape, I selected the circles, and did a path union operation. Finally, I added a blur to the clouds. UPDATE: I decided to give some shimmer to the clouds. I added a gradient from blue to yellow towards the sun for the stroke on the cloud, and gave a low layered duplicate for the sun shape a slight blur for a glow effect.
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